Exxon Mobil and Chevron Financial Performance
exxon mobil and chevron Exxon Mobil and Chevron Financial Performance Understanding the key ratios of a company is very important for investors. Each ratio uncovers the inner workings of the company, and may lead an investor to make a decision on whether to invest in the company, or to continue looking elsewhere. Exxon Mobil and Chevron are both in the same industry, and are virtually household names. In this study, key ratios of these two companies will be analyzed, and a comparison of results will be provided.
Exxon Mobil and Chevron – Financial Data
Exxon Mobil and Chevron are two of the most prominent companies in the energy sector, ranking 2nd and 4th, respectively, on Fortune 500’s list of America’s largest corporations (Fortune Magazine, 2007). The companies are traded on the New York Stock Exchange (NYSE), and have over $500 billion USD in combined revenue from the year 2006; making them interesting corporations to financially analyze.
When analyzing a company’s financials, it is important to conduct ratio and trend analysis. Ratio analysis allows for certain important performance factors to be translated into useful statistics for a given reporting period. Trend analysis, on the other hand, provides insight into a company’s long-term situation since a comparison of certain key ratios spans multiple years; hopefully providing analysts with a clue as to how the company will perform in the future. The follow key ratios were derived from Exxon Mobil’s and Chevron’s SEC filings for the years 2005/6, and will be used to determine possible trends for the companies.
Understanding the key ratios of a company is very important for investors. Each ratio uncovers the inner workings of the company, and may lead an investor to make a decision on whether to invest in the company, or to continue looking elsewhere. Exxon Mobil and Chevron are both in the same industry, and are virtually household names. In this study, key ratios of these two companies
Exxon Mobil and Chevron – Financial Data
Exxon Mobil and Chevron are two of the most prominent companies in the energy sector, ranking 2nd and 4th, respectively, on Fortune 500’s list of America’s largest corporations (Fortune Magazine, 2007). The companies are traded on the New York Stock Exchange (NYSE), and have over $500 billion USD in combined revenue from the year 2006; making them interesting corporations to financially analyze.
When analyzing a company’s financials, it is important to conduct ratio and trend analysis. Ratio analysis allows for certain important performance factors to be translated into useful statistics for a given reporting period. Trend analysis, on the other hand, provides insight into a company’s long-term situation since a comparison of certain key ratios spans multiple years; hopefully providing analysts with a clue as to how the company will perform in the future. The follow key ratios were derived from Exxon Mobil’s and Chevron’s SEC filings for the years 2005/6, and will be used to determine possible trends for the companies.
Understanding the key ratios of a company is very important for investors. Each ratio uncovers the inner workings of the company, and may lead an investor to make a decision on whether to invest in the company, or to continue looking elsewhere. Exxon Mobil and Chevron are both in the same industry, and are virtually household names. In this study, key ratios of these two companies
References: Warren, Reeve, Duchac (2009). Principles of Accounting. Edition 23, Cengage Learning. Edmond (2006), Managerial Accounting. 7 edition, McGraw-Hill high education. From http://highered.mcgrawhill.com/sites/0072991054/student_view0/chapter13.html MSN Money (2007) from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=XOM Fortune Magazine (April 30, 2007) http://money.cnn.com/magazines/fortune/fortune500/2007/full_list/index.html MSN Money (2007)